User Tax Rears Its 1% Head

June 01, 1986

Chicago residents who purchased vehicles from suburban dealers between Jan. 1, 1982, and July 1, 1985, have until Sunday to pay a 1 percent user tax. Because the wording of the ordinance on the tax is vague, according to the interim director of revenue, residents ``in effect`` can resolve the matter by paying a maximum tax of $90 for a new car purchased during the period and $45 in taxes for an old car. If they have documents showing they paid less than $9,000 for their new car or $4,500 for a used one, they can pay 1 percent of the price. Joanne Malinowski, head of the Department of Revenue, said the ordinance reads that if an owner does not have documentation, they will be levied $90 and $45, respectively.